An English council is investing more than £1m in its libraries, in contrast to the rolling programme of closures across many areas of the country as authorities make swingeing budget cuts.

The decision by Blackpool council to plough £1m into its central library, with another £2m from the Big Lottery Fund, has been hailed as a triumph and another chapter in the seaside town's cultural revival.

The Brent ruling centred on the 1964 Public Libraries and Museums Act, which says local authorities must provide a "comprehensive and efficient library service", and may determine how far other local authorities can go with their planned closures.

In Blackpool there are no such concerns. The Grade II-listed Carnegie library, on the edge of the town and opposite a job centre, is flooded with light and colour. Eight modern coloured glass windows are the focal point of the refurbishment, with a colour palette inspired by seaside hues of beach huts and sweets. The 100-year-old library's rather dour former entrance has been repositioned and opened up and the bookshelves on the ground floor significantly lowered to create a sense of space.

The artist who designed the windows, Nick Robertson, said he hoped there was something to appeal to everyone and described the building as "absolutely beautiful".

Graham Cain, council cabinet member for tourism and culture, said: "In Blackpool, we have a long tradition of residents using and valuing our library service – and long may it continue. This is a gem of a building and the magnificent transformation has flooded it with light."

The refurbishment embraces the original Edwardian fabric of the building, yet there are numerous modern touches. In a reading lounge area, a trio of teenage students were flopped on the sofas and comfortable chairs quietly reading. Rob Eagle, a young musician and artist, said: "I come here to chill out sometimes. It has a good feel to it and it is also environmentally friendly."

There are spaces where courses are run to help people return to work, community areas and a cafe. The entrance is fully accessible – the old entrance was via stone steps that made it impassable for wheelchair-users. It also offers a home delivery service to 170 readers who are unable to get to the library.

Anne Ellis, head of libraries, said: "We are really proud that in Blackpool we are protecting libraries and we are very fortunate in these difficult times.

"We used to be envious of the library service in Bolton, as an authority, but they are losing five out of their 15 libraries. We've only been open a few weeks, but visitor numbers are already up."